Have You Started Saving For The Retirement?

In today’s world owning a house and having a secured job might be a big achievement but there is something more concerning that you need to be prepared for, i.e. ‘Retirement’. It is a phase in life when you finally decide that you have done all you could in your career and look for a contented life. Even during that fragile age, you need to be financially sound to make sure that you are capable enough to take care of your own expenditure. To make sure that you have a contented life after retirement, you need to take some important financial decisions now. The best way to get the life you desire during your retirement years is to conserve your money wisely. Many people prefer to manage their retirement with the savings that they have accumulated over the period of time. Savings can be a better option, but the only drawback that you face with accumulated income is that it is limited and can get over soon. To keep the inflow of funds constant during that time of life, you can choose to invest your savings in sources that would offer better gains. If you are a first-time investor and have less knowledge of the market, then it is recommended that you do not go for options like mutual or equity funds. The best way that you can invest your savings without the fearing of losing your capital is by investing in sources like Senior Citizen Fixed Deposit, Post Office Monthly Investment Schemes (POMIS) and Senior Citizen’s Savings Schemes (SCSS). In order to choose from the above options, you need to have basic information about them. Here are the things that you need to know: Post Office Monthly Investment Schemes (POMIS): It is a government curated scheme that has functions that are very much similar to FDs. POMIS have a deposit limit of INR 4.5 Lakh under single ownership and INR 9 Lakh under joint ownership. The only drawback that you might face while investing in POMIS is that you cannot withdraw the invested amount before the lock-in period. Senior Citizens Savings Schemes (SCSS): As the name portrays, it is only available for citizens that are above the age of 60. You can apply it from any post office or financial institution. You can invest an amount that can range upto the amount of 15 Lakh, and one owner can open more than one account for the deposit. The tenure for SCSS ranges to 5 years and can be further extended up to three years. Senior Citizens Fixed deposits: The Senior Citizen Fixed Deposit is a bit different than the usual fixed deposit accounts. The best thing about fixed deposit is that the interest rate on Senior Citizen Fixed Deposit starts at 8.10 percent. Most of the NBFCs have flexible tenure policy due to which the interest compound can be adjusted according to financial standings of the investor. The tenure period for the Senior Citizen Fixed Deposit ranges from 1 to 5 years. The above-mentioned option can keep you financially secure, but you need to understand their terms and conditions well before investing. If you are planning to invest in Senior Citizen Fixed Deposit, then you can use the FD calculator to get an estimate of the returns that you will gain from your service provider.